LED industry: it's not time to talk about overcapacity

LED inventory rising. By the end of last year, some small companies really can not stand, can only give workers a holiday. This phenomenon not only exists in Zhongshan Xiaolan, ancient town. Shenzhen LED industry association data show that last year, Shenzhen closed down more than 80 LED production enterprises. For a time, LED overcapacity theory enveloped the entire LED industry.

In the industry view, the downstream application market does not start, LED lighting industry is difficult to scale. Can not achieve scale, it is difficult to reduce costs. In the customer view, the quality of instability, the cost can not fall down, it is difficult to determine the promotion of market applications. This has been plagued by the development of LED industry. At this time, the government needs to support the introduction of appropriate policies to break the deadlock with external forces.

Just past 2011, the economic downturn in Europe and the United States, so that the development of China's LED industry suffered winter. A lot of enterprise inventory high capital chain tight, many small and medium enterprises bankruptcy closed. Despite the rapid expansion of the scale of the industry, but the whole industry boom has fallen. Two years ago, the momentum of rash and too much in haste have been hard to find, the industry together more discussion is how to spend the winter. For a time, LED overcapacity theory, LED industry will follow the footsteps of the photovoltaic industry, popular.

As one of the three major strategic emerging industries in Guangdong Province, the LED industry has been placed great expectations in our province, shouldering the responsibility of promoting the transformation and upgrading of the province's industry. Difficulties encountered in the LED industry, will not let this desire come to nothing? This concern, many industry insiders said in an interview with this reporter, Guangdong province LED industry chain has been paying off, the ability of independent innovation at the forefront of the country, construction standards are also actively follow up. Now encountered difficulties, mainly due to the economic downturn in Europe and the United States drag. As long as the domestic application market starts, the market potential will erupt, Guangdong LED industry will re-enter the fast lane.

LED industry is in a state of chaos?

LED industry is the lack of standards, making some inferior products just in the market, inferior LED products ruining the market reputation.

In February 27th, Shenzhen NVC chairman Wu Changjiang through the media saying: "now the domestic LED lighting field, basically in a state of confusion and disorderly competition, and there is a growing trend. In Wu Changjiang view, this disorderly competition in the state of confusion, the most obvious manifestation is the blind expansion of investment resulting in excess capacity. Various funds have flocked to the field of LED lighting, generous investment, large-scale expansion of common. The end of the application and the market did not erupt, making huge capacity can not find exports.

Guangdong juke lighting Limited by Share Ltd deputy general manager Wang Junhua had also said in an interview with Nanfang Daily reporter, due to the huge potential of the LED lighting industry, lighting, do do photoelectric products, 3C, hardware, in the LED industry to squeeze in, think this is the blue ocean. "Even the real estate manufacturers have come to ask me, do LED is not very profitable? "

In the last year to get $10 million investment in Jinsha River fund Shun lighting CEO Sun Jianning told reporters, LED lighting industry is technology, capital intensive industries, only the funds is not enough. Some small businesses, buy chips, lamps, simple assembly, it is thought that LED products. Such things will flood the market, let the market confused. Guangdong Provincial Bureau of quality supervision sampling report shows that in 2010, Guangdong LED lighting product quality pass rate of only 47%. Although this data in 2011 increased by 26 percentage points, but only about 73.2%. 73.2% pass rate is still low compared with foreign countries. Zhang Yanfei, deputy director of the Guangdong Provincial Quality Supervision Bureau pointed out.

Lack of standards, but also one of the reasons causing confusion in the industry. Although the country has introduced a number of technical standards, but has not yet formed a standard system. Coupled with the rapid development of LED technology, national standards, industry standards tend to lag behind the development of the market, making the lack of practical standards. Wang Junhua pointed out. It is because of the lack of LED industry standard, making some inferior products just in the market, inferior LED products ruining the market reputation.

In order to promote the standard construction, in early January of this year, the Guangdong Provincial Quality Supervision Bureau, Guangdong provincial science and Technology Department jointly issued the first Asia "LED lighting industry standard system planning and route map", the roadmap shows that in 5 years, Guangdong will be completed more than 130 LED local standards, more than 130 of the standard for local positioning Quality Supervision Bureau of Guangdong Province, put forward the "high starting point to" principle, hope to promote the development of Guangdong province in LED industry standard strategy.

"It's not about overcapacity"

In the early stages of the development of any new industry, there will be a situation of investment. Hand of the market will play a role

Although the 2011 Guangdong province LED industry output value of 150 billion yuan, compared to 2010 has increased dramatically, but this promotion is a large number of enterprises, a lot of money into the business from their own perspective, the situation is not optimistic. LED industry listed companies released in 2011 three quarterly report shows that the company's revenue and profit growth in the third quarter of LED listed companies showed a decline in the overall situation. Many LED listed companies can get high subsidies from the government, otherwise, quarterly will be more ugly. GF Securities, an industry analyst who declined to be named told reporters in private.

As the industry leader in the performance of listed companies fell significantly, more difficult for smes. Zhongshan Xiaolan a LED enterprise negative